TOKYO, March 20 — Japan’s government resumed petrol subsidies on Thursday to curb pump prices, setting support at 30.20 yen (US$0.19) per litre of regular petrol gasoline Wednesday and aiming to bring the national average retail price down to around 170 yen.
The programme also covers diesel and heavy oil to ease costs for businesses as well as farmers, foresters and the fishing industry, according to Kyodo news.
The government will adjust the subsidy weekly, based on forecasts of the following week’s retail prices that reflect changes in crude oil prices.
The regular petrol price hit an all-time high of 190.80 yen per litre as of Monday, as crude oil prices surged after the US-Israeli attack on Iran. The government set the latest subsidy rate based on projections that the price would rise to 200.20 yen next week.
The economy ministry said petrol price declines will vary by station because presubsidy inventories remain, and it has not specified when it will end the subsidies.
